Hon. JOHN BRICEÑO

ADDRESS ATWORLD CLIMATE INDUSTRY EXPO LEADERS’ SUMMIT IN BUSAN, SOUTH KOREA

May 27, 2023

Time to Cope with Climate Change: for People, Planet & Prosperity

yielded immediate and positive results. In November 2021, the Government of Belize and The Nature Conservancy (TNC) announced the completion of a 364 million US dollar debt conversion for marine conservation. This reduced Belize’s debt by 12 percent of GDP. This move created long-term sustainable financing for conservation and locked in our commitment to protect 30 percent of Belize’s seas, as well as a range of other conservation measures. The transaction, when completed, was the world’s largest debt refinancing for ocean conservation. The debt conversion enabled Belize to repurchase USD 553 million, a quarter of the country’s total public debt, from bondholders at a 45 percent discount through a “Blue Loan” arranged by The Nature Conservancy (TNC). The “debt conversion” resulted in a reduction of USD 189 million in principal outstanding. Additionally, Belize saved around USD 200 million in debt service reduction over a period of 20 years. The savings achieved in the refinancing allowed Belize to create an estimated USD 180 million in conservation funding over 20 years, composed of annual cashflows from the government and an endowment capitalized through the Blue Loan. As part of the transaction, Belize committed to ocean conservation undertakings, including placing 30 percent of our ocean and parts of the Mesoamerican Reef, under protection by 2026, using a transparent, participatory Marine Spatial Planning process, and establishing an independent Conservation Fund to allocate the conservation funding to in-country partners.

Among many other awards, the Blue Bond transaction was recognized in Environmental Finance’s 2022 Bond Awards, winning the sovereign sustainability bond of the year and the award for sustainability bond structure innovation. Belize’s successful negotiations of its Blue Bond demonstrated a tested model for incorporating its marine conservation, climate and sustainable use commitments and goals into an innovative and non-traditional deal. The conservation of our seas is a must and Belize will see the global target of 30 by 30 met through its Blue Bond Deal by 2026. Belize recognizes the need to employ ecosystems-based management to better balance our use of the oceans with the need to maintain healthy and resilient oceans. Through its Blue Bonds, Belize intends to develop a comprehensive and inclusive Marine Spatial Plan for its entire Ocean Space to ensure that its Blue Economy is based on an approach which has incorporated conservation, traditional and indigenous approaches and nature positive development. We consider our Blue Bond to be an important milestone in financing ocean conservation goals and we are proud that it has served as a precedent for other sovereign green financing instruments and debt restructuring operations.

This endeavor requires global solidarity, cooperation, and equitable partnerships. Developed nations must support developing nations in their efforts to adapt to and to mitigate the impacts of climate change on their marine environments. Scientific research, knowledge-sharing, and capacity building initiatives should be fostered to empower all nations to tackle this shared crisis.

Your excellencies, distinguished guests, ladies and gentlemen the time to act is now. By taking decisive and bold steps, we can steer our planet towards a sustainable and resilient future. Let us rise above self-interest and work together to combat climate change, for the sake of the oceans, for the sake of the vulnerable and poor populations, for the sake of future generations, and more so, because this is truly the only place we can call home.

Thank you!